Professional Adviser Use Only – Not for public distribution.
Investment Summary
JustUs Peer-to-Peer Agreements (FCA Regulated ISA & Non-ISA)
Purpose
This document provides you with key information about this product. It is not marketing material. The information is designed to help you understand the nature, risks, costs, potential gains and losses of this product and to help you compare it with other products. This document should be read in conjunction with our member Terms & Conditions Document
Product
Company Name:
eMoneyHub Ltd trading as JustUs
Name of FCA Regulated Products:
JustUs Innovative Finance ISA Account JustUs Regular Lending Account
Investor Type (Non-Restrictive):
Private Individuals and (certain Limited Companies*) Small Self-Administered Scheme (SSAS)
Company Website:
https://www.justus.co
Production Date of this document:
27 January 2020
To prevent ‘Cash Drag’ un-lent monies held in both Regular and ISA Accounts receive interest monthly equivalent to
1.2%
p.a.
About the company. eMoneyHub Ltd, trading as JustUs is a Peer to Peer investment/lending platform that was formed in 2013. Since that time and during product testing, the platform has originated in excess of £10.45m of loans, funded entirely by retail capital which has been lent to borrowers. JustUs launched the testing of its Innovative Finance ISA product in September 2017, which allowed existing lenders to earn returns in the tax-free ISA wrapper. From April 2018 this product became available to the professional intermediary community. The business offers a unique range of loan products to borrowers: • • • •
Property bridging as 1st legal charges from £25,000 to £1,000,000 and 2nd legal charges from £25,001 to £250,000 Non-regulated Buy-to-Let mortgages from £25,000 to £1,000,000 Guarantor supported borrowing of between £2,000 and £15,000 Unsecured borrowing of between £2,000 and £25,000
Investors fund loans that are listed on the platform and receive their investment return as the loan is repaid. Loan repayments may be split between a repayment of capital, interest to the lender and the platform fee paid to JustUs. Advisers/Investors are required to select their risk appetite for lending via ‘Pots’. Each ‘Pot’ is structured with a designated split of borrower products.
Performance Scenarios
The tables below show the returns that would have been received in the preceding 4 years investing via the individual ‘Pots’ and a forecast return in year 5. The calculations illustrate the return if £10,000 had been invested at the start of 2015 and the interest earned was re-invested. The forecast investment return is dependent on how the loans perform and how long the investment/product is kept. The figures show gross returns of the products and do not take into account the investor’s personal tax situation. Returns are displayed in monetary terms and also by way of percentage.
Prudent Balanced Adventurous
2015 Actual £10,367.86 £11,497.08 £12,168.20
2016 Actual £10,912.40 £12,531.72 £13,448.60
2017 Actual £11,388.87 £13,542.24 £14,537.43
2018 Actual £11,880.87 £14,410.30 £15,934.47
2019 Actual £12,436.89 £15,419.02 £17,747.81
2020 Forecast £12,974.17 £16,407.38 £19,453.38
Prudent Balanced Adventurous
2015 Actual 3.7% 6.9% 9.4%
2016 Actual 5.3% 9.0% 10.5%
2017 Actual 4.4% 8.1% 8.1%
2018 Actual 4.32% 6.41% 9.61%
2019 Actual 4.30% 6.45% 9.60%
2020 Forecast 4.32% 6.41% 9.61%
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.
Professional Adviser Use Only – Not for public distribution.
Loan Book Structure.
Total lending as at 27 January 2020 is £10,445,304.699 with a current outstanding book of £4,343,608.68. Loans are structured across property, guarantor and unsecured borrowing. The table below shows the number of assets (loans) held in each ‘Pot’ over the last 4 years.
2015 Actual 2 15 107 124
Prudent Balanced Adventurous Total Loan Holdings
2016 Actual 2 22 94 118
2017 Actual 5 24 71 100
2018 Actual 2 24 70 96
2019 Actual 3 34 56 93
Company Milestones June 2016 August 2017 September 2017 December 2017 January 2018 April 2018 April 2018 May 2018 July 2018 Feb 2019 Feb 2019 June 2019 January 2020
JustUs brand launched and JustUs ISA terms outlined. JustUs receives full FCA authorisation JustUs receives full HMRC ISA Manager status First JustUs ISA opened together with first loan funded from tax-free accounts JustUs applies to the FCA regulatory sandbox to include JustUs Home Finance Products, AKA P2P residential mortgages as a new product. JustUs ISA launched to the Intermediary Market JustUs transfers all business banking accounts to New Barclays Bank UK PLC (ring-fenced bank) for increased client money protections. Intermediary investment portal BETA launch for Wealth Managers and Family Offices. FCA crowdfunding consultation CP18/20 proposes new regulatory vertical for P2P "Home Finance Platforms". JustUs sets product delivery roadmap underway. First JustUs pension lender accounts (SASS) deposited via intermediary portal. Long term investment capital now being received to fund mortgages and loans. JustUs launches equity platform with £4.5M EIS shares to become next Fintech Unicorn JustUs receive FCA Authorisation for Home Finance Platform (Residential Mortgages). JustUs bursts the £10 million lent milestone
FCA Board Member Controlling Functions Lee Birkett – Executive Chairman & CEO SMF1/SMF3/SMF16/SMF17 eMoneyHub Ltd 08/2017 – current SMF3 eMoneyDirect Ltd 08/2017 – current SMF3 Moneybrain Ltd 10/2016 – current (Historical)
CF1 Prestbury Financial Ltd 10/2004 – 06/2008 CF3/CF8 Prestbury Financial Ltd 10/2004 – 11/2008 CF2 NED Prestbury Investment Management Ltd 04/2006 – 12/2007 CF1 (AR) St James’ Place Wealth Management Ltd 07/2008 – 12/2008 CF3/CF11/CF28/CF29 Moneybrain Ltd 10/2016 – 10/2016
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.
Professional Adviser Use Only – Not for public distribution.
John Gray – Finance Director SMF3 eMoneyHub Ltd 08/2017 – current (Historical)
CF23 KPMG 12/2001 – 08/2002 CF23 KPMG LLP 04/2002 – 09/2003 Richard Farr – NED NED eMoneyHub Ltd 08/2017 – current FCA Skilled Person
Lynne Birkett – NED NED eMoneyHub Ltd 08/2017 – current (Historical)
CF1 Prestbury Financial Ltd 10/2004 – 11/2008 CF13 Prestbury Financial Ltd 10/2004 – 10/2007 CF28 Prestbury Financial Ltd 11/2007 – 11/2008
What is this product? Type:
Peer-to-Peer Agreements (which is abbreviated to P2P), is the practice of lending money to individuals or businesses through an online service. This service matches lenders with individuals who are looking to borrow money. Due to the lower overheads of the platform, lenders have the potential to earn higher returns compared to savings and investment products offered by banks, while borrowers can borrow money at lower interest rates. There is the risk of the borrower defaulting on the loans taken out from peer-lending websites.
Customer Type:
Commercial | Professional | Retail (Investment) | Retail (Non-Investment Insurance)
Objectives:
The service offers the opportunity to receive increased returns outside of ‘traditional’ financial institutions.
Intended Retail Investor:
This product is aimed at all potential investors age over 18 years. The level of investment is controlled by the investor themselves or by their Financial Adviser. There is a minimum investment of £10 with no maximum. *In special circumstances Limited Companies may also lend through a JustUs Regular Lending Account but must demonstrate that they are not “lending by way of business”.
What are the risks and what could I get in returns? Risk Indicator The summary risk indicator (shown in the box below) is a guide to the risk level of this product compared to other investment products available on the market. For the purposes of clarity, the JustUs Management have classified each of the ‘Pots’ within this Innovative Finance ISA individually. The whole amount of the investable capital is at risk and there is no guarantee that the money invested will be returned in full. Security in the form a first or second legal charge is offered on all secured loan products. A guarantor who is a homeowner is required on loans to tenants. There are securities in the form of a ‘Rainy Day Pot’ for unsecured homeowner lending.
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.
Professional Adviser Use Only – Not for public distribution.
Prudent Pot
JustUs Management have classified this product as 3 out of 10, which we classify as low risk. This classification rates the potential for losses as low and that poor market conditions are very unlikely to impact the returns. The ‘Pot’ is made up of • Buy-to-Let mortgages, which will be secured by way of a first legal charge against UK residential property up to a maximum LTV exposure of 65%. • Bridging loans, which will be secured by way of a first legal charge against UK residential property with a maximum LTV exposure of 65%. • Low rate unsecured loans, where the borrower must be a homeowner with an excellent credit history.
Balanced Pot
JustUs Management have classified this product as 4 out of 10, which we classify as lowest medium risk. This classification rates the potential for losses as the lowest medium and that poor market conditions are unlikely to impact the returns. The ‘Pot’ is made up of • Bridging loans, which will be secured by way of a first legal charge against UK residential property with a maximum exposure of 75% LTV (Average 70% LTV). • Average rate unsecured loans, where the borrower must be a homeowner with and average credit history. • Personal guarantor loans, available to homeowners and tenants with a medium to poor credit history. The borrower must obtain the backing from a home owning personal guarantor, with an excellent credit history. • BTL mortgages, which will be secured by way of a first legal charge against UK residential property to a maximum LTV of 80%.
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.
Professional Adviser Use Only – Not for public distribution.
Adventurous Pot
JustUs Management have classified this product as 7 out of 10, which we classify as highest medium risk. This classification rates the potential for losses as the highest medium and that poor market conditions will likely impact the returns. The ‘Pot’ is made up of • Personal guarantor loans, available to homeowners and tenants with a medium to poor credit history. The borrower must obtain the backing from a home-owning personal guarantor, with an excellent credit history. • Bridging loans, which will be secured by way of a second legal charge against UK residential property with a maximum exposure of 85% LTV (average 75% LTV). • Higher rate unsecured loans, where the borrower must be a home-owner, but may have experienced credit problems in the past through no fault of their own.
What happens if JustUs is unable to pay out?
An investor would not be able to make a claim to the Financial Services Compensation Scheme or any other compensation body in the event that the Company were unable to pay any returns. In the unlikely event that JustUs ceases to trade, all loan agreements remain in force and repayments are collected and payable through the Barclays Protected Client Call Account. In addition to this we have the added security of the Rainy Day Pot for unsecured loans. This discretionary pot was created to provide additional security to lenders to cover missed interest repayments of unsecured loans. Loan based crowdfunding (peer to peer) is not covered by the Financial Services Compensation Scheme (FSCS). Please bear this in mind when deciding to invest on the platform.
What are the costs?
Platform Fees: Borrowers pay all platform fees. Investor Fees: The platform does not charge investors fees. Advisers can levy a charge for the work they do in setting up the investment and the ongoing costs of their advice.
Are the products flexible?
There is no fixed period of how long the investment could be held for. In all instances the period of investment will be dictated by the adviser or the investor. If you or your investor chose to sell your loans, this can be done via the secondary market. The sale of a loan cannot be guaranteed however the company will do everything it can to support the sale. All loan sales are at par.
What happens if JustUs loses its FCA Licence?
In the event that eMoneyHub Ltd ceases to carry on the regulated activity of operating an electronic system in relation to lending, it has a regulatory duty to take reasonable steps to make arrangements for all live P2P agreements to be managed and administered in accordance with the borrower’s and lender’s contract terms. This is colloquially known as the P2P platform’s ‘living will’. There is a ‘resolution agreement’ in place which sets out the terms and service level expectations with FCA Authorised firm, Moneybrain Ltd to carry out this function.
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.
Professional Adviser Use Only – Not for public distribution.
How can I complain?
You clients have the right to complain to the Financial Ombudsman Service (FOS) about the management of the Company. If they have any complaints about the Company, they may lodge their complaint: • Via our website https://www.justus.co • In writing to JustUs, 28b London Road, Alderley Edge, Cheshire SK9 7DZ
JustUs.co is a Peer to Peer platform owned and operated by eMoneyHub Ltd. eMoneyHub Ltd is Authorised and Regulated by The Financial Conduct Authority. Registration number: 787900. eMoneyHub Ltd is registered on the Data Protection Register No: Z3292835 Registered office: 28B London Road Alderley Edge Cheshire SK9 7DZ.Company No: 08158588 Registered in England and Wales.